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This set of multiple-choice questions covers basic economic concepts like GDP, opportunity cost, returns to scale, currency conversion, trade protection, and NNI.
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13 stepsSolve Question 38.
The total value of goods and services produced within a country's borders, regardless of the nationality of the producers, is defined as Gross Domestic Product (GDP).
The correct option is B.
Solve Question 39.
Opportunity cost is the value of the next best alternative foregone. If no alternative is sacrificed, then there is no opportunity cost.
The correct option is C.
Solve Question 40.
When a firm doubles all its inputs and output more than doubles, this indicates that the firm is experiencing increasing returns to scale.
The correct option is C.
Solve Question 41.
To find the cost in FCFA, multiply the cost in Euros by the exchange rate.
Cost in FCFA =
Cost in FCFA =The correct option is C.
Solve Question 42.
Trade restrictions, such as tariffs or quotas, are primarily implemented to protect domestic industries, especially new or developing ones (infant industries), from foreign competition.
The correct option is D.
Solve Question 43.
Net National Income (NNI) is calculated by subtracting capital consumption (depreciation) from Gross National Product (GNP).
The correct option is B.
Solve Question 44.
A reduction in advertising cost per unit as output increases is a type of marketing economy of scale, as advertising is a marketing expense.
The correct option is C.
Solve Question 45.
An indirect tax is a tax levied on goods and services rather than on income or profits. Value Added Tax (VAT) is an example of an indirect tax.
The correct option is A.
Solve Question 46.
In developing countries, a significant problem facing agriculture is the lack of adequate storage facilities, which leads to post-harvest losses.
The correct option is C.
Solve Question 47.
Total utility is the sum of marginal utilities.
Total utility for 3 units = MU(1) + MU(2) + MU(3)
Total utility =The correct option is A.
Solve Question 48.
The main purpose of a stock exchange is to provide a regulated market for buying and selling securities like stocks and bonds.
The correct option is D.
Solve Question 49.
Inflation is a general increase in prices and a fall in the purchasing value of money. Therefore, a negative effect of inflation is that it reduces the real value of money.
The correct option is D.
Solve Question 50.
Education and skills are considered components of human capital, which is classified as human wealth.
The correct option is B.
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